Soybeans rallied from the AM open on export sales announcements that totaled 387,000 MTs. However, November soybeans found resistance back above the contract’s 50 day moving average. The soy product markets finished sharply mixed, with meal leading the soy complex higher, while soyoil followed Malaysian palm oil lower. Commodity funds sold 500 soybean and 3,000 soyoil contracts, while buying 1,000 soymeal.
NASS reported national GD/EX soybean crop ratings at 59%, down 1% from last week, while national harvest was 4% complete. The chart shows IA GD/EX ratings, which declined 3% for the week to 58%. While late season rains in W Iowa offered late summer relief, crop ratings remain well under the long term average and well below a year ago. We note that NASS’s implied pod weight for IA was 8% over last year and record large, while the Sep pod count was at a 4 year low.
Nearby support was established last week under $9.50 November, while the market awaits more harvest data to determine a yield trend. Our view is for lower yields in October, when actual harvest data can be incorporated into NASS’s projection.
